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Economics - Financial Markets 16 Online
OpenStudy (anonymous):

I need help please. I am not understanding how to do the multiplier. Supposed that autonomous spending were to increase by 1, 000 billion and the multiplier is equal to 6. I have to graph this but I don't understand where to start.

OpenStudy (anonymous):

Formula = 1/1-(MPC) You can show the effect of multiplier like the one in the attachment

OpenStudy (anonymous):

Thanks! So what is the MPC? 1B or 6? I dont know what number to use. My book doesn't explain it well for me. Maybe I am just not grasping it.

OpenStudy (anonymous):

Put in the values in the given formula. Dont worry you'll get it :)

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